Supplier Due Diligence & Factory Verification

Supplier Due Diligence & Factory Verification Service

Short Description

A structured supplier due diligence and factory verification service covering company background, manufacturing capability, legal risks, production qualifications, export history, product documentation, and key commercial terms.

Service Fee: US$300

Service Overview

This service is designed for international buyers who need a preliminary and structured assessment of a potential Chinese supplier before placing an order, requesting samples, arranging a factory visit, or entering into a commercial agreement.

QGO Business will review available corporate information, supplier-provided documents, production qualifications, export records, manufacturing capabilities, and key commercial conditions.

Scope of Due Diligence

1. Business Nature and Manufacturing Capability

  • Confirm whether the supplier has its own manufacturing facilities.
  • Identify and exclude suppliers operating only as trading companies without their own production workshops.
  • Review the relationship between the registered company, factory entity, and export entity where applicable.

2. Corporate Background Review

  • Company registration information.
  • Registered capital.
  • Date of establishment and operating history.
  • Registered business scope.
  • Shareholder and legal representative information where available.
  • Current company registration status.

3. Factory Scale Verification

  • Approximate factory area.
  • Size and availability of Class 100,000 cleanroom facilities.
  • Number of production lines.
  • Daily production capacity.
  • Main production equipment.
  • Workforce and operational capacity where verifiable.

4. Legal and Compliance Risk Review

  • Litigation records.
  • Administrative penalties.
  • Food safety violations.
  • Commercial disputes.
  • Abnormal business registration records.
  • Other publicly available legal or regulatory risk indicators.

5. Production Qualification Verification

The review will focus on the following required and supporting qualifications:

  • China Food Production License, commonly known as the SC License.
  • Verification that the licensed production scope includes Sports Nutrition Food under GB 24154.
  • ISO 22000 certification.
  • HACCP certification.
  • GMP certification or compliance documentation.
  • FDA registration information where applicable.
  • Export registration or filing documents.
  • Other relevant food manufacturing and export qualifications.

6. Export Track Record Review

  • Previous overseas customer or brand cooperation cases where available.
  • Main export countries and regions.
  • Available customs shipment records.
  • General export experience.
  • Export documentation capability.

7. Product Documentation Review

  • Raw material Certificates of Analysis, or COAs.
  • Third-party finished-product testing reports.
  • Product stability testing information.
  • Available product specifications.
  • Ingredient and formulation documentation where provided.
  • Packaging and labeling compliance documents where applicable.

8. Commercial Terms Confirmation

  • Minimum order quantity, or MOQ.
  • Indicative unit pricing.
  • Production lead time.
  • Available packaging options.
  • Private-label and customized packaging capabilities.
  • DDP door-to-door shipping feasibility.
  • Indicative DDP shipping quotation where available.
  • Sample order availability.
  • Payment terms and production deposit requirements.

9. Factory Audit Support Confirmation

  • Confirm whether an on-site factory audit can be arranged.
  • Confirm whether the supplier supports a live video tour of the production line.
  • Confirm the availability of production-line photographs and videos.
  • Identify any conditions, appointment requirements, or additional fees related to an on-site inspection.

Deliverables

The client will receive a written findings summary that may include:

  • Supplier background information.
  • Manufacturing capability assessment.
  • Qualification and certificate checklist.
  • Identified legal, operational, or compliance risks.
  • Commercial terms summary.
  • Missing or unverified documents.
  • Key questions requiring further confirmation.
  • Preliminary recommendation for the next stage of supplier engagement.

Important Service Conditions

The US$200 service fee covers preliminary desk-based due diligence, document review, supplier communication, and verification using available public records and supplier-provided information.

The following items are not included unless separately agreed and quoted:

  • On-site factory inspections.
  • Inspector travel and accommodation.
  • Independent laboratory testing.
  • Product sample purchase and shipping.
  • Paid customs databases or third-party database charges.
  • Government filing fees.
  • Legal opinions.
  • Financial audits.
  • Document notarization or legalization.
  • Certification application services.

QGO Business will use reasonable efforts to review and verify the available information. However, the service does not constitute a legal opinion, financial audit, government certification, or guarantee of the supplier’s future performance.

The completeness of the review may depend on the availability of public information, the supplier’s cooperation, and the authenticity of documents provided by third parties.

Once customized research or supplier communication has started, charges relating to completed work or costs already incurred may be non-refundable to the extent permitted under the applicable service agreement and applicable law.

Information Required from the Client

After payment, please provide:

  • Target product name and specifications.
  • Supplier company name.
  • Supplier website or marketplace link.
  • Supplier contact details.
  • Intended order quantity.
  • Destination country.
  • Required certifications.
  • Packaging requirements.
  • Target delivery schedule.
  • Any specific risks or concerns that should be investigated.

Supplier Search Support

If the client does not have an existing supplier list, QGO Business will conduct an initial supplier search and provide a shortlist of 3–5 potential suppliers for further review, comparison, and due diligence, subject to the client’s product requirements and market availability.

The shortlist is based on preliminary supplier screening and does not constitute final approval, certification, or a guarantee of the supplier’s performance. Each shortlisted supplier will still be subject to the applicable verification and due diligence process.

The estimated completion schedule will be confirmed after the required supplier and product information has been received.